• No need to submit documentation on the end use of the loan.
• No need to provide collateral as security as it is an unsecured loan
Additional Reading: Personal Loan Application Process
Instant personal loan: If you have a good credit score, many lenders approve your loan application within a matter of a day or two, or even few minutes. Some banks, like HDFC Bank, Federal Bank, Axis Bank among many others, offer over-the-counter loans, subject to eligibility and other terms and conditions.
Check with your existing bank: Being an existing customer helps with the application and documentation process and speeds up the loan approval process significantly.
Always maintain a decent credit score and a clean credit history: Getting a loan to tide over emergencies – especially within a short span of time – is very difficult. Lenders generally take time to verify your credit history, your residence, etc., while reviewing your loan application. This can take anywhere from 7 working days to 21 working days, depending on the lender. Having a good repayment track smooths and reduces the time of the entire loan application process.
Check your credit report periodically: Make sure there are no administrative errors like a wrong address or misspelled name etc. If you find any errors, get them rectified immediately or else these will delay and complicate the loan approval process when you need money urgently.
Having a good credit score helps you get quicker approvals for personal loans. Since personal loans are unsecured, lenders depend on your credit report to ascertain your credit worthiness. It is worth your time to establish a good credit score and history, so that when you are in urgent requirement of funds, you are able to land a loan offer as soon as possible and at the best terms and conditions without any hassles.
Benefits of having a good credit score:
Quick Loan Approval: A good credit score accelerates your loan approval process. Banks readily approve your application if you have demonstrated responsible repayment behavior in the past.
Better Interest Rate: With the backing of a good credit score, you can negotiate for a lower rate of interest on your personal loan. People fail to realize that they can in fact negotiate for better terms and conditions. If you have a good credit score, you can bargain for lower interest rates.
Affordable Loans: Having a good credit score also means you can negotiate on the processing fee and miscellaneous fees and charges. You could perhaps get some of the charges waived out and bargain your way out of the burden of these charges.
Smoother processing and speedy disbursals: Having a good score means you are diligent in your payment and that you are responsible with credit. It makes the whole process easier and makes accessing credit hassle-free.
Most important take-away? Always ensure that you maintain good credit health so that you have quick and hassle-free access to money when you need it the most.
Additional Reading: All You Need to Know About the Credit Card Approval Process
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